Traditional payroll systems were not built to accommodate a remote and global workforce. While some companies still rely on mailed checks, most have switched over to direct deposits. When catering to employees based in the same geographical location, these systems can function fine, but when payments must be sent across borders, complications arise. These can include high fees, slow delivery rates, and compliance issues.

Web3 payroll provides a flexible and modernized approach to compensation that is designed to make both local and cross-border payments streamlined, scalable, and cost effective. Payroll solutions that are built using blockchain technology rely on distributed ledger systems that record and verify transactions through a network of nodes, eliminating the need for centralized authorities.

Rather than relying on a costly third party to send or approve payments, transactions are permissionless and fees are reduced by up to 70%. In addition to the cost benefits, money sent on blockchain networks arrives in seconds rather than days, weeks, or months. When recruiting global talent, the delays associated with traditional payroll are a major pain point; the ability to offer instant payments as part of a compensation package is a competitive hiring edge.

Whether crypto enthusiasts or individuals seeking a more stable currency in which to hold their savings, the option to receive a full or partial paycheck in crypto and stablecoins is an important feature of web3 payroll. In the case of a hybrid payroll solution, companies can fund payroll in the currency of their choice - from crypto in a digital wallet to fiat currency in a traditional bank account- and employees can cash out in their preferred currency.